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Tappan Zee Bridge: Feds question loan from clean water fund

The day before a state agency is set to vote on a $511 million loan for the new Tappan Zee Bridge, the U.S. Environmental Protection Agency is questioning whether the project should receive the funds, calling it an "unconventional" use of money typically intended for sewer projects.

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Tappan Zee Bridge: Feds question loan from clean water fund

By Khurram Saeedksaeed@lohud.com
11:56 p.m. EDT June 25, 2014

The EPA has raised concerns over the plan to finance the bridge with clean water funds.

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Pilings in the foreground have been driven to their full depth and are at their completed height, as viewed from a boat near the construction site of the Tappan Zee Bridge project, photographed June 5, 2014. The new span will be directly supported from these pilings.(Photo: Joe Larese/The Journal News)Buy Photo

As a state agency prepares to vote Thursday on a $511 million loan for the new Tappan Zee Bridge, the U.S. Environmental Protection Agency is questioning whether the project should receive the funds, calling it an "unconventional" use of money typically intended for sewer projects.

EPA Region 2 Administrator Judith Enck wrote in a letter Wednesday that she wanted to ensure that "the process surrounding this decision is transparent." She didn't ask the Environmental Facilities Corp. board to delay its vote but asked for more information as it continues its review.

Enck questioned why the state's controversial plan to borrow $511 million from the Clean Water State Revolving Fund hasn't been opened to public comment and asked state Environmental Conservation Commissioner Joe Martens to respond to eight specific concerns.

They include explaining how the state determined 12 projects connected to the Tappan Zee Bridge replacement project was "the best and highest use" of funds to improve water quality in the New York-New Jersey Harbor Estuary as well as to clarify some cost estimates.

"We are more than happy to answer questions from EPA Region II and anyone else who is interested in this section of the Clean Water Act which explicitly allows EFC to finance environmental projects that benefit environmental projects in the Hudson River, a national estuary," EFC President and CEO Matthew Driscoll said in a statement. "We plan on voting (Thursday) on this loan proposal that will advance financing for these important environmental projects and help reduce costs and ultimately have a positive impact on reducing toll rates."

Environmental groups have criticized the loan proposal, saying it is not an appropriate use of clean water funds. They contend that only $12.5 million of the $511 million loan would be used for "genuine environmentally beneficial projects."

In its letter, the EPA also asks the state to explain how the shared-use path "relates to water quality improvement."

The EFC has defended its decision about the loan, noting it will be used to pay for protecting marine life during construction of the bridge, returning oyster beds to the natural habitat, disposing of dredge material from the Hudson River and restoring the Piermont Marsh.

The state Thruway Authority would certainly welcome the low-cost loan as it continues to piece together financing for the $3.9 billion project. The first draw on the loan in the coming months would be for approximately $250 million and it would be interest-free.

More money would be taken out in 2015 and 2016, at interest rates expected to be below 4 percent.

The Thruway board is expected to vote to approve the loan in August.

The twin-span crossing is scheduled to be completed in 2018, although traffic will begin to be shifted to the first new span two years from now.